Opinion: Defense Cuts Before Tax Hikes

Assistant editorial page editor James Freeman on what's likely to come out of President Obama's meeting with Congressional leaders. Photo: Associated Press

This transcript has been automatically generated and may not be 100% accurate.

... I ... a compromise ... unlike the US ... I've been encouraged over the past week Junior Republican after Republican agree ... on the need for no more revenue from the wealthiest Americans as part of arrhythmic sic if were to be serious about reducing ... the deficit ... because when it comes to taxes ... there are too fat to Isabel ... option one ... if Congress fails to act by the end of this year ... everybody's taxes will automatically go up ... the other option is to pass the wall right now that would prevent ... any tax Ike whatsoever on the first to earn fifty thousand dollars ... of everybody's income ... welcome to Opinion Journal I'd mind Dan Henninger well that was President Obama earlier this week expressing his views on avoiding the fiscal cliff and reducing the deficit ... the president met earlier today with the Congressional leadership of both parties and when they emerge of most of them said they felt positive about the possibilities of a compromise ... here talk about with me is the editorial pages the system editor James Freeman had been James this so op how are you feeling about the ... negotiations and feeling positive ... while the euro is on the market rally isn't happy talk that they're going to get a deal ... not sure I'm wearing the all that optimistic ... because the president so far hasn't really said what he's willing to do he said again and again and again the taxes he wants to raise but ... he's never really put on paper ... what exactly he's willing to cutting this massive federal budget and a ... I think that's what Republicans in the house would like to see big they passed a budget last year what see your doctor ... well that raises a timing issue James on the one hand ... many people would like to see a deal before generate first when the fiscal cliff is triggered ... on the other hand they're talking about negotiating into next year ... these negotiations are never easy to do when we're in the middle of November what ... prospect effective they are getting a deal before ... the deal could happen I think one for Republicans what they've got a focus on is that ... people call the fiscal cliff it's mainly the tax cliff lots of big tax increases ... but the other piece of that is the sequester this is the ... agreement covering of the twenty eleven of ... a fight over the of the debt ceiling that the forces a bunch of spending cuts ... I'm I'm about a hundred billion next year and I think the Republicans have to realize that is there one leverage point with the president ... it's got both of military and social program spending in there ... I think Republicans have to say we're willing to accept some budget cuts of the Pentagon now been to test how for Brock Obama is willing to go to avoid spending cuts ... to the rest of the governed ... well that and I think I agree with you but it does raise a ton of interesting dynamic that ... ultimately were talking about reducing the deficit ... most people think you have to cut spending to reduce the deficit ... but the president's side ... doesn't feel too enthusiastic about cutting spending or as the Republican side is not enthusiastic about raising taxes ... something's gotta give in between there and the straight and I you know this Tax Cliff and is serious about five hundred million next year stagnant economy Ohio employment economy still ... I think ... you have to be concerned about that blow to the economy was over we did ... president all he's talking about is bigger and bigger numbers of taxes he wants to raise ... so I think ... if you're a ... Republican you need to think about how you pushback on that whether it's ... getting a little bit more sane tax policy ... or getting some long-term spending reforms on the onthe Altly side of the federal ledger ... I think it really comes down to being willing to say we'll ready to let the sequester go forward a new show was what you're willing to do to avoid ... there is a school by the president ... would take the sequester and then blame the consequences on the Republicans an American Indian you could've been programmed for right where they can win this week is the really are consequences to the sequester we're not talking about ... cutting federal budget in half you talking about modest ... reduction in federal spending despite what what people say to me that's not going to hurt the U S economy if anything is can give businesses confidence ... that the government might actually start a ... restraining it spending putting its house in order but the big economic it is from those tax increases and that's certainly what Republicans are negotiating to avoid all right James thanks ally